• Shape the market

    Shape
    the market

     

    Weber quote

    GAVI is the toughest buyer we deal with, when the price is fixed for GAVI you can be assured that there is nothing extra left.

    Christophe Weber,
    President and General Manager, GlaxoSmithKline Vaccines


    GAVI aims to create a strong, healthy vaccine market that generates sufficient supply of quality vaccines at low and sustainable prices for developing countries.

     

    Change in the total cost to fully immunise a child with pentavalent, pneumococcal and rotavirus vaccines
    Selected vaccine package price (US$)

    cost-fully-immunise

    Source

    UNICEF Supply Division, 2013

    The total vaccine cost of fully immunising a child with pentavalent, pneumococcal and rotavirus vaccines fell from US$ 32.97 in 2011 to US$ 22.63 in 2012.

     

    Number of products offered as percentage of 5-year target (%)

    number-of-products

    Source

    UNICEF Supply Division, 2013

    This indicator assesses the level of interest among manufacturers to supply their products for the GAVI market in response to UNICEF tenders. More products offered by different manufacturers means healthy competition, a broader supplier base and better supply security.

    Bill Gates tweet

    Bill Gates

    @BillGates

    Knowing needed vaccines sat on shelves led @melindagates and I to do work in a world beyond reach of market forces.

    Retweeted by GAVI Alliance

  • Reduced vaccine prices

    In 2012, the GAVI Alliance helped to lay the foundations for greater market certainty, reduced vaccine prices and improved supply security.

    GAVI, through UNICEF, issued four new tenders in 2012 – two more than in 2011. The tenders were for human papillomavirus (HPV), pentavalent, pneumococcal and measles-containing vaccines.

    In 2012, GAVI began buying the bulk of its rotavirus vaccines at the new, lower price of US$ 2.50 per dose. This is a two-thirds reduction compared with the previous lowest price offer, and will allow developing countries and GAVI to prevent more future deaths at the same cost.

    During the year, GAVI started procuring pentavalent vaccines from a new manufacturer, Biological E (Bio-E), based in India. This brings the total number of suppliers offering prequalified pentavalent vaccines to four.

    Expanding the supplier base still further for key vaccines is important to ensure long-term supply security.

    Berkley quote

    Our market-shaping goal is to maintain supply security and strive to achieve the lowest price for currently available products.

    Dr Seth Berkley,
    CEO, GAVI Alliance

    GAVI’s supply and procurement OBJECTIVES

    supply-and-procurement

  • Market shaping in action

    GAVI_2012_Sala-Lewis_ZANZIBAR_1523

    From 5 to 10 fact

    From 5 to 10

    vaccine manufacturers

    The number of manufacturers supplying GAVI-funded vaccines doubled between 2001 and 2012.

    Market shaping in action

    Compared with generic drugs, vaccines are more difficult to manufacture and require significantly greater investment both in terms of money and time. As a consequence, there are fewer producers, higher barriers for new manufacturers to enter the market and less scope for price reductions.

    GAVI has found that a proactive approach to market shaping is necessary to ensure the most favourable conditions for the world’s poorest countries. GAVI’s supply and procurement strategy, adopted in 2011, aims to secure sufficient supply of appropriate, quality vaccines for all GAVI-supported countries, to keep the cost of vaccines as low as possible, and to foster an environment for innovation. A fourth objective is to communicate timely, transparent and accurate market information to manufacturers and countries.

    Although vaccine market shaping is a long-term process, the Alliance has had some significant impact on the market. By bundling demand from more than 70 developing countries and providing greater market certainty, GAVI has helped to reduce prices, speed up the delivery of life-saving vaccines and attract new manufacturers to the market.

    Through the implementation of a demand forecasting tool and by sharing market information in a transparent and timely manner, Alliance partners are enabling countries to make more informed decisions about vaccines and manufacturers to plan their production more effectively.

    GAVI has also contributed to strengthening the national regulatory capacity in supported countries, and to the development of global norms and standards for vaccines. The Bill & Melinda Gates Foundation has been a critical partner in designing and implementing market innovations to help minimise prices and strengthen supply security.

    Expanding the supplier base

    Since the early days of GAVI, the number of manufacturers supplying GAVI-funded vaccines has increased significantly. In 2001, GAVI purchased vaccines from just five manufacturers, of which only one was based in a developing country. By 2012, this had increased to 10, including 4 based in middle-income countries.

    GAVI tweet

    GAVI Alliance

    @GAVIAlliance

    Achieving @GAVIAlliance mission depends on a healthy market providing vaccines at low and sustainable prices

  • Roadmaps

    Roadmaps to guide GAVI’s market-shaping efforts

    Vaccine roadmaps are a fundamental part of GAVI’s approach to shaping vaccine markets. They set out the Alliance’s long-term ambition for each vaccine, both those it is currently funding and those it plans to support in the future.

    Each roadmap gives an overview of the dynamics of a particular vaccine market. It comprises an analysis of current and future products available, product characteristics, cost and price drivers, a prioritisation of GAVI’s objectives and options for how to achieve them, and a time frame for GAVI’s engagement.

    GAVI relies on an array of procurement and market-shaping tools, the use of which depends on the characteristics of each market. For example, by prepaying a portion of the vaccine supply or extending the deal period, and thereby providing manufacturers with increased certainty, GAVI may encourage manufacturers to offer vaccines at more competitive prices. Providing a long-term view of the market can help to enlarge the supplier base and encourage new suppliers to enter the market.

    By the end of the year, GAVI had finished its first vaccine market roadmap – for HPV vaccines – which was used to inform the procurement of the vaccine in 2013. Roadmaps for all other vaccines are under development.

    Gotani quote

    We applaud GAVI’s commitment to make the HPV vaccine more accessible and affordable to Malawi and other low-income countries.

    Catherine Gotani Hara,
    Minister of Health, Malawi

    Women Deliver

    Women deliver award

    to GAVI’s support for HPV vaccines

    UNI111948_SIERRA_LEONE

    On International Women’s Day 2012, GAVI’s support for HPV vaccines was hailed by Women Deliver as one of the 50 most inspiring ideas and solutions that deliver on women’s and girls’ health.

    Women Deliver, a global advocacy organisation dedicated to improving the health and well-being of girls and women, received nominations from 103 countries. The top 50 initiatives were chosen through an online voting process.

    HPV, which is highly transmissible, is responsible for the vast majority of cases of cervical cancer. Worldwide, 275,000 women die from cervical cancer each year. Over 85% of these deaths occur in developing countries.

    The Alliance invited countries to apply for HPV vaccine support in April 2012. GAVI has been working with vaccine manufacturers to reduce the price of HPV vaccines to a sustainable level.

    Access other stories:

    Bangladesh, Honduras, Madagascar and Nicaragua
    Expanding
    Ghana and Tanzania
    Haiti
    Kenya
    Mozambique
    Myanmar
    Nigeria
    Pakistan
    Pakistan
    Rwanda
    The Democratic People’s Republic of Korea
    Women Deliver
    Yemen
    “la Caixa”

  • Women deliver Expanding

    road-maps

    Expanding

    Expanding

    the supplier base in emerging markets

    GAVI_2012_Eva-Lotta-Jansson_MOZAMBIQUE_880

    The Alliance is playing an active role in encouraging manufacturers based in emerging market economies to enter the vaccine market. In 2012, GAVI started buying pentavalent vaccine from the Indian manufacturer Bio-E, thus opening up a new supply channel for a vaccine that has had issues with supply reliability in recent years.

    LG Life Science, a vaccine manufacturer based in the Republic of Korea, was successful in obtaining WHO prequalification for its pentavalent vaccine. By ensuring access to more low-cost pentavalent vaccine products, GAVI and developing countries will be able to prevent even more deaths.

    In 2012, the Chief Executive Officer of the GAVI Alliance, Dr Seth Berkley, met with Chinese vaccine manufacturers for the first time.

    Access other stories:

    Bangladesh, Honduras, Madagascar and Nicaragua
    Expanding
    Ghana and Tanzania
    Haiti
    Kenya
    Mozambique
    Myanmar
    Nigeria
    Pakistan
    Pakistan
    Rwanda
    The Democratic People’s Republic of Korea
    Women Deliver
    Yemen
    “la Caixa”

  • Making vaccines affordable

    Number of manufacturers AND price decline OF PENTAVALENT VACCINE

    penta-price-decline

    Source

    UNICEF Supply Division, 2013

    Making vaccines more affordable for developing countries

    Yamada quote

    Vaccines represent the finest example of partnerships between the private sector and public sector.

    Dr Tadataka Yamada,
    Chief Medical and Scientific Officer, Executive Vice President, Takeda Pharmaceuticals International

    In recent years, GAVI Alliance partners, particularly the Bill & Melinda Gates Foundation, have helped to drive down the prices of some of the key vaccines used by developing countries. For instance, the weighted average price of pentavalent vaccine fell from US$ 3.61 per dose in 2007 to US$ 2.17 in 2012 – a drop of 40%. In the same period, the number of manufacturers that GAVI purchased the vaccine from increased from 2 to 4.

    Significant price reductions have also been secured for the rotavirus vaccine, bringing the cost down from approximately US$ 15 to just US$ 5 per course, or US$ 2.50 per dose. This will have an expected market impact valued at US$ 650 million.

    The Alliance opened a new funding window for HPV vaccine in April 2012. During the year, the GAVI Secretariat worked with vaccine manufacturers to secure price commitments for the vaccine of less than US$ 5 per dose, or US$ 15 per course.

    The cost of fully immunising a child with pentavalent, pneumococcal and rotavirus vaccines fell from US$ 32.97 in 2011 to US$ 22.63 in 2012, representing a saving of more than US$ 10 per immunised child.

    UNI124940_AFGHANISTAN
  • Yemen

    Yemen

    introduces rotavirus vaccines procured at lower price

    In the waiting room of the Al-Zahrawi Health Centre, parents discuss the new vaccine against rotavirus, a common cause of deadly diarrhoea throughout Yemen. The health centre is located close to a market, and many families bring their children to be immunised after shopping.

    Yemen is the first country in the Middle East to introduce rotavirus vaccine with GAVI support. Rotavirus kills more than 5,000 Yemeni children under the age of five annually, and 40% of all children hospitalised for diarrhoea have rotavirus.

    In 2012, GAVI announced that it will buy most of its rotavirus vaccine doses at a cost of US$ 5 per course. This is 97% lower than the US private market price and a third of the lowest price offered to public institutions worldwide.

    By pooling demand and bulk buying vaccines, GAVI maximises the value of its donor contributions and increases the ability of countries to sustain vaccine programmes.

    yemen-map

    Access other stories:

    Bangladesh, Honduras, Madagascar and Nicaragua
    Expanding
    Ghana and Tanzania
    Haiti
    Kenya
    Mozambique
    Myanmar
    Nigeria
    Pakistan
    Pakistan
    Rwanda
    The Democratic People’s Republic of Korea
    Women Deliver
    Yemen
    “la Caixa”
    GAVI_2012_Amira-AL-Shairf

    Yadav quote

    Reduced transaction costs for manufacturers and lower uncertainty in the market – this will not only be beneficial to manufacturers, but also to country programmes.

    Dr Prashant Yadav,
    Senior Research Fellow & Director of Health Care Research Initiative, University of Michigan, USA